Analysis of Marriott with Hilton and Starwood
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Added on 2020-02-14
Analysis of Marriott with Hilton and Starwood
Added on 2020-02-14
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`Table of ContentsKey performance indicators analysis of Marriott with its competitor’s Hilton and Starwood.................................................................................3Marriott’s business model canvas............................................................................................................................................................................84Cs including SWOT analysis..................................................................................................................................................................................11McKinsey’s 7s synthesis framework.......................................................................................................................................................................13Ansoff Matrix.........................................................................................................................................................................................................16PART 2........................................................................................................................................................................................................................17Two key operational areas of Marriott and developing a process map.................................................................................................................17Areas of risk...........................................................................................................................................................................................................18Risk management plan...........................................................................................................................................................................................18REFERENCES..........................................................................................................................................................................................................18
Key performance indicators analysis of Marriott with its competitor’s Hilton and StarwoodKey performanceIndicators Marriott International Corporation 19272014%change 2013%change 2012%change 2011%change 2010Revenue 8370782.52.48%8168061.49.53%7457441.8-2.90%7680409.31.55%7563537.4Net profit 456,886.0014.23%399,969.2010.97%360,436.70191.93%123,465.20-58.33%296,304.90Gross profit 1,192,879.005.84%1127069.89.94%1,025,130.002.62%998,945.804.68%954,256.90Gross margin 14.253.28%13.800.38%13.755.69%13.013.09%12.62Net margin 5.4611.46%4.901.31%4.83200.66%1.61-58.97%3.92Number of employee1235000.41%123,000.00-3.15%127,000.005.83%120000-6.98%129000Revenue per employee3.7013.77%3.2514.58%2.84175.84%1.03-55.21%2.30ROA 11.0315.74%9.532.25%9.32250.38%2.66-50.92%5.42EPS 2.5427.00%216.28%1.72212.73%0.55-54.55%1.21Current ratio 0.76-8.43%0.830.00%0.83-5.68%0.88-27.27%1.21Quick ratio 0.39-13.33%0.4512.50%0.45.26%0.38-33.33%0.57Debt to equity ratio 1.57-17.80%1.91-3.05%1.97-2.96%2.03-8.56%2.22Assets turnover ratio 30.791.92%30.21-7.73%32.74-26.23%44.38162.91%16.88Operating expenditures 7,667,554.201.81%7,531,049.70634.64%1,025,130.002.62%998,945.80-85.96%7,113,904.40Total assets 4,408,497.207.20%4,112,341.904.45%3,937,149.603.53%3,802,844.10-33.72%5,737,553.10occupancy %73.10%1.81%71.80%1.27%70.90%0.14%70.80%--Revenue per $112.25-8.23%122.32-1.53%124.22-3.90%129.26--
Hilton Incorporation, 1919KeyperformanceIndicators 2014%change 2013%change 2012%change 2011%change 2010Revenue 63721342.45%6219968.56.26%58533796.88%5476602.34.92%5219624Net profit 408,34654.00%265,15519.37%222,12040.80%157,75790.50%82,810.10Gross profit 103755021.37%85488621.50%70359213.52%619805-29.03%873388Gross margin 16.2818.47%13.7414.34%12.026.21%11.32-32.36%16.73Net margin 6.4150.32%4.2612.34%3.7931.74%2.8881.57%1.59Number ofemployee1570003.29%152000------Revenue peremployee2.6049.10%1.74------ROA 2.59%50.58%1.72%30.30%1.32%47.05%0.90--EPS 0.4122.22%0.18-25.00%0.2450.00%0.16-164.00%-0.25Current ratio 1.110.00%1.11-7.50%1.2-12.41%1.37--Quick ratio 0.744.23%0.714.41%0.68-1.45%0.69--Debt to equityratio 2.43-16.21%2.9-57.16%6.77-22.89%8.78--Assetsturnover ratio 0.411.11%0.365.88%0.349.10%0.31--Operatingexpenditures 5334584-0.57%53650824.18%51497876.03%485679811.75%4346236Total assets 167766924.35%16077719-4.05%16755502-4.66%17574159--occupancy %78.40%3.29%75.90%------Revenue per $$156.187.71%$145------
KeyperformanceIndicators Starwood incorporation 19802014% change 2013% change 2012% change 2011% change 2010Revenue 3630211-7.09%3907048-2.05%398870313.74%35068216.89%3280703Net profit 384076-5.33%40572014.40%35463616.31%304914-1.19%308597Gross profit 2593875-3.13%26777496.92%25045349.92%22784367.67%2116186Gross margin 71.454.25%68.549.15%62.79-3.36%64.970.72%64.50Net margin 10.581.88%10.3816.80%8.892.26%8.69-7.56%9.41Number ofemployee180,400-0.55%181,400---100.00%1540006.21%145000Revenue peremployee2.13-4.91%2.24------ROA 7.30%-6.84%7.83%13.36%6.91%19.16%5.80%-0.35%5.82%EPS 2.1912.89%1.94-15.65%2.384.00%1.2548.81%0.84Current ratio 0.95-8.65%1.0410.64%0.94-25.98%1.274.96%1.21
Quick ratio 0.85-7.96%0.9221.99%0.76-12.32%0.862.89%0.84Debt to equityratio 1.59250.09%0.45-14.14%0.53-39.93%0.88-32.46%1.30Assets turnoverratio 0.65-11.38%0.741.24%0.7327.64%0.578.50%0.53Operatingexpenditures 3095054-6.66%3316039-5.09%349398011.84%31239648.00%2892531Total assets 55605504.85%5303553-3.25%5481784-10.89%6151470-1.48%6244052occupancy %70.10%2.04%68.70%1.03%68.00%0.00%68.00%--Revenue per $$123.083.30%$119.152.27%$116.511.70%$114.56--Important highlightsProfitability ratio measures business ability to generate profits through their dailybusiness operations or activities (Jami and Bahar, 2016). Gross margin and netmargin are the two most common used profitability ratios that help to evaluatepercentage of gross profit and net profit on total turnover. Marriott’s GM got shows a continuous upward movement as it got increased from12.62% to 14.25% in the year 2014. It reflects that Marriott hotel is generatingincreased return on their total sales throughout the years in 2014; the percentageincrease in GM is 3.28%. However, comparatively the ratio is higher in StarwoodIncorporation and Hilton Incorporation to 71.45% and 16.28% respectively thatindicates that both these competitors are generating higher profit on their total sales. Liquidity ratio measure that company has enough resources or not to meet theirshort-term obligations, especially creditors. Current ratio depicts relationshipbetween current assets and current liabilities whereas quick or acid test ratio measurebusiness ability to make deferral payments without considering inventory position. Marriott’s CR got decreased from 0.88:1 to 0.76 in 2014 indicating that liquidityposition of the company has declined over the years. Moreover, 2:1 is considered asideal industrial ratio and Marriott’s ratio is still far away than this target ratio whichdepicts that hotel is not able to pay their short-term business obligations timely andeffectively (Parsian and Shams, 2014). However, on the other side, Hilton andStarwood’s CR are comparatively higher to 1.11 and 0.95 demonstrate thatMarriott’s competitors are more able to pay their short-term liabilities on right time. 123450.002.004.006.008.0010.0012.0014.00Gross margin123450.002.004.006.008.0010.0012.0014.00Net margin
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